While many people dream about starting their own business, far fewer make it happen. Nearly two-thirds of American adults have thought about starting their own business, only about a third of Americans have actually taken the plunge, according to a 2009 FindLaw.com survey. Why? My experience as a management consultant has shown that irrational fears are one of the main factors holding them back.
The irony is that those who take responsibility to overcome these mental hurdles and start a business, often don't look back. Fear is short-lived and often replaced by an experience of empowerment and a commitment to success.
Are you afraid of taking the entrepreneurial leap? Here are a few of the false assumptions that are fueled by fear, along with tips for moving beyond what may be holding you back.
"If I find the right business, I will succeed." This assumes the winning formula of a business resides outside the skills and experience of the entrepreneur and inside the business products and systems. This mindset can lead to endless nitpicking over what is wrong with every business opportunity that pops up. An experienced entrepreneur thinks, "The business doesn't make me successful. I make the business successful." This more powerful truth can empower an entrepreneur to acknowledge the potential pitfalls then figure out ways to make it work.
"Being self-employed is unpredictable and I want a comfortable and normal life." While almost everyone likes stability and security, entrepreneurs accept and plan for inconsistency in the short term in exchange for a life and career they choose in the long run. Someone with "an employee mindset" is like someone who sits comfortably in the stands watching the big game wondering what it would be like to play. The business owner takes the field and plays all out.
"I'm afraid of the unknown." People who are afraid of owning their own business are terrified by the ambiguity that comes with it. Entrepreneurs don't like ambiguity either, but accept it as something temporary and fully expect the business to produce a more predictable result in near term.
"A business failure will kill me." Entrepreneurs don't like failure, but they typically won't put themselves in situations they won't survive. A seasoned entrepreneur understands what the worst-case scenario is, and crafts a "survival strategy" in case it happens. While entrepreneurs don't expect to fail, they will survive if they do.
"It's not the right time to start a business." Some people act as if the universe is comprised of two time periods -- the right time to start a business and the time the would-be entrepreneur is currently living in. A true entrepreneur declares now to be the right time and finds ways to make it work.
Ask yourself what one action you should be taking to bring you closer to my goals. Then, regardless of how large or small that action is, take it. Spend a day writing your business plan. If you want to start a consulting business, take on just one client.
The best advice for would-be entrepreneurs may have come from St. Francis of Assisi: "Start by doing what's necessary. Then do what's possible. And suddenly you are doing the impossible."
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Comments:
Excellent information! I can really relate to this article about "start up" fears and strategies to overcome them. What I have found is that it is really important to develop a network of positive individuals who will encourage and support your efforts. I recently went to UW Small Business Development Corp. and was able to work with a business counselor, who actually told me to stop plans to launch my business, as I hadn't developed some key areas of my business plan. With her assistance, I plan to develop more specific and targeted goals for my business that will more accurately project what I hope to accomplish. Having the passion and enthusiasm for entrepreneurship is great, but it needs to be tempered with realistic expectations as well.
I am 51 yrs old. Just retired from my first job after 23 yrs. Starting my second business and I am so pleased to read about other peoples opinion about their business ventures and I glad there are so many positive people out there can share their views and ideas. Thank you.
Very motivational post. It gave me the positive energy to keep going with my current startup. Thank you.
cool post .. just gotta be realistic though its nice that you have a plan or dream but its has to be realistic I watch the sharks and see people come on with thier new business plans and some are just unreal expectations ..
Some good advice. It's often a case of "if I don't try, I'll never find out" - but just because working for yourself can be uncertain, it's no reason to take unnecessary risks. Good planning will help, including lots of market research.
Well stated and here's my addition: I think the most important skill to develop for a start-up is REJECTION RESILIENCE. You have to get used to hearing a few no's, making a few mistakes, and the possibility of looking bad on occasion.
One way to overcome the fear of starting a business is to start part time. A person doesn't have to give up his or her day job to start a business. Starting part-time gives you the opportunity to experience entrepreneurship without all the risk. Starting part-time also means that you can often start with very little money (see http://www.freehomebusinesses.com). This is another way to overcome the common fear that people have: "It costs too much money". It doesn't have to...
Your point is valid, but I don't want prospective entrepreneurs to go thinking they do not need the planning. There are some critical question to answer before you start your business. For the entrepreneur, it's to know when the plan is adequate, and it is time to start the business, and not try to fill in every little detail. Some questions, after all, will only be answered by experience.
Many prospective entrepreneurs may hesitate to give up a steady income to start a business, but being employed can be more unpredictable than being self employed especially in a job market such as we have seen for the past several years. It is true that as an employee, you know what your salary will be at set intervals, while with your own business results can fluctuate from month to month. It is also true that as an employee you are subject to being laid off at any time. Some laid off employees go years without finding a new job. As a business owner, you have more control over keeping your job.
The path to success is the learning process of our failures. Even when an idea does work out, it will need tweaks later on to maintain a positive outlook.
Overcoming startup fear is just like overcoming your first visit to the dentist back when you were a kid. It is all how you think about it. It is all about mindsetting!
Great article! It can always be scary taking the plunge for the first time as an entrepreneur, but as long as you put the right tools into place and have a good plan then you'll probably be all right. A great way to start is by using spreadsheets, and if you don't know how to make them, then using templates is the right way to go. There's a website that offers all of their templates for free called OneClick Commissions. I've used them a few times when I first started my own business and I find them really helpful, plus they're always adding new templates to their site. Hope this helps! Erin C. Spreadsheet Templates
More important we must control our fears since they are by far the most debilitating.
This article offers some great suggestions for overcome the hurdles involved in starting your own business. In order to avoid the fear of the unknown, I've found using quick, inexpensive market research solutions like Lab42 (https://lab42.com/) to be very helpful. It's a good way to validate your business idea or to find out more about your target market.
thanks for the article... as an entrepreneur, we must be able to control our business...
Thanks for your helpful tips here.
If you could find out the best unique skill of yours and got a chance to proove this on your current job, surely you can think about that to overcome this start up fear.
If a post makes me get off my arse and do something, it must be a good one. Well done!
I find that a lot of would-be entrepreneurs get stuck in "analysis paralysis"! They let the over-think and over-plan instead of getting jumping in and trying to make a go of it.
"Save Money" Once you decide to start up your business and the time it will become profitable; you will need some of your savings to keep the business floating...
Great post! Stop procrastination and start working!